Black and Buono Blog

Here are a few tips for people coming out of bankruptcy on how to move forward.

1. Get Your Credit Report

The first step is to know exactly what's holding you back. Are there other problems on your report besides the bankruptcy filing? Start by getting a copy of your free annual credit report.

2. Pay Bills on Time

Just over a third of your credit score is determined by your payment history. One of the fastest ways to boost your score is simply to pay your bills before they're due.

3. Get New Credit, but Start Small

You may not be able to qualify for a mortgage now. But you probably can get a secured credit card, in which you pay a security deposit. After that, try for a retail store card, and then maybe a personal or car loan.

4. Watch Out for Traps

In this economy, many organizations offer credit repair services. But many of these outfits are scams. Beware any company that offers to lower your debt in return for an upfront fee. If you decide you do need credit counselingor consolidation, contact us.

5. Don't Close Anything

Maybe you want to close your credit card accounts and be done with credit forever. Don't. An often-overlooked part of a credit score is length of credit history, and the longer you've had credit accounts open, the better. The problem isn't the account, it's the spending.